"Although the diversity of industries based here helped us stay ahead of other national markets, leasing slowed throughout the state in the third quarter," according to Donald P. Eisen, executive managing director. "The exception, of course, occurred in the last two weeks of September, when a flurry of activity resulted from Manhattan-based companies that needed immediate solutions to regroup.

"And while some displaced companies filled vacant space along New Jersey's Hudson waterfront," Eisen continues, "many found opportunities to remain in New York. At the same time, a great deal of 'shadow space' was added to the market, especially large blocks of corporate-held space."

C&W estimates putt that "shadow space" at more than 993,200 sf in the month of September alone. The firm counts 93 blocks of space in 74 buildings across the northern and central portions of the Garden State.At the same time, the C&W report places the overall vacancy rate at 11.7% for the region at the end of the third quarter, up from 10.5% at mid-year. Central New Jersey accounted for most of that - its vacancy rate jumped from 8.5% to just under 13%. In contrast, Northern New Jersey saw a minimal increase from 11.9% to an even 12%.